Explain how government borrowing today can imply higher taxes or lower government spending in the future.

The intertemporal budget constraint for an infinite-horizon representative agent can be written as. ◜≡H◞t◟-◝ ℙt (C ) = Bt + ℙt. (1). where Bt is the ... Nov 9, 2017 ... Finally, the paper claims that fiscal policies that aim at being consistent with an intertemporal budget constraint are likely to destabilize ... Mar 2, 2017 ... • Intertemporal choice. • Three periods, = 0, = 1, and = 2 ... • Anticipated budget constraint at = 1: 1. +. 1. 1 +. 2 ... Sep 28, 2020 ... The inter-temporal budget constraints model was used to examine the various fiscal reaction functions, debt dynamics and fiscal policy ... 2. Consumer's choices are subject to an intertemporal budget constraint-a measure of the total resources available for present and future consumption. Given the ... An intertemporal budget constraint is a graphical representation of an individual's trade-off between present and future consumption. It shows the combinations ... Sep 13, 2018 ... price level in line with the intertemporal budget constraint (in real terms). In equilibrium, monetary and fiscal policies jointly ensure ... in part due to interviewing methods that check the inter-temporal consistency of responses, ... intertemporal budget constraint of households and asked ... representative consumer has an intertemporal budget constraint where money can be borrowed or saved. – There is a time consistent solution that gives ... If the consumer faces an intertemporal budget constraint. C1 + β C2 = constant, where β = 1/(1 + interest rate) is the period-1 equivalent of a dollar in ...